FirstFarms A/S’ interim financial report 1 January

FirstFarms A/S’ interim financial report 1 January – 30 September 2024

Extreme weather affects the result

The interim result is affected by extreme weather and is not satisfactory.

The Board of Directors and Management of FirstFarms A/S have today reviewed and adopted the unaudited interim financial accounts for the period 1 January – 30 September 2024.

Main figures
FirstFarms has in the accounting period realised:

A turnover of 327 mDKK (2023: 345 mDKK)
An EBITDA of 86 mDKK (2023: 79 mDKK)
An EBIT of 41 mDKK (2023: 42 mDKK)
A result before tax of 13 mDKK (2023: 28 mDKK)

The turnover in the period fell by 5 percent. This is primarily due to difficult cultivation conditions combined with shift in the delivery time of crops and a temporary decline in milk production.

FirstFarms’ strategic business model with a focus on efficiency in production, circularity, ownership of land and risk diversification across operations and geography means that we deliver an EBITDA above last year’s level. Result before tax is lower than last year, primarily due to higher net financial items. The interest rate level and financial costs are as expected.

FirstFarms’ investment in irrigation in Romania is a success. 13 tonnes of maize per hectare under irrigation were harvested in the autumn, compared to 1.5 tonnes per hectare on the areas that were not irrigated.

Following the end of Q3, FirstFarms has decided to invest in irrigation of an additional 750 hectares and a doubling of the silo capacity to 46,000 tons in Romania. A total investment of 80 mDKK, which is part of Strategy 2028 and will have a positive impact on earnings in 2025.

Market prices for piglets and slaughter pigs were at an acceptable but decreasing level in Q3. The pig prices have decreased further in Q4 and are expected to remain unchanged until the end of the year.

The prices of milk have been at a satisfactory level throughout 2024. Unfortunately, there was a temporary decrease in milk production towards the end of the period due to heat stress.

In Q3, FirstFarms started the construction of the company’s own dairy. The dairy is directly linked to milk production in Slovakia and will produce cream and concentrated milk products, that will be delivered directly to food producers in Europe. The dairy will start production in mid-2025 and is another of the Groups strategic initiatives that will contribute to the future growth and more sustainable products.

CEO Anders H. Nørgaard is optimistic about the future:
“We have a strong financial foundation and good liquidity. This year we have focused on executing on our ambitious 2028 strategy, and next year we will begin to capitalise on the strategic initiatives and projects that have been launched.”

We also expect that the increases we are seeing in crop prices right now will continue, and that pig prices will remain at the current level until the end of the year.”

FirstFarms’ long-term goal is to increase the Group’s annual turnover to 750 mDKK and EBITDA to at least 240 mDKK in 2028.

FirstFarms specifies the expectations for the year to an EBITDA in the level of 90 - 100 mDKK and an EBIT of 30 - 40 mDKK.

Announced expectations 2024 mDKK	EBITDA	EBIT
27 November 2024 (company announcement no. 13)	90-100	30-40
28 August 2024 (company announcement no. 10)	90-120	30-60
21 March 2024 (company announcement no. 5)	110-140	50-80

Best regards,
FirstFarms A/S

For further information:
Please visit our website www.firstfarms.com or contact CEO Anders H. Nørgaard on phone +45 75 86 87 87.

About FirstFarms:
FirstFarms is a Danish stock exchange listed company. We operate FirstFarms with responsibility for the surrounding communities, and we deliver highest quality which is primarily sold locally. We act on new opportunities, that create value for our investors and for the surroundings. Every day, we work on creating a more sustainable company.

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